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DECREE

PROVIDING FOR FOREIGN COOPERATION AND INVESTMENT IN SCIENCE AND TECHNOLOGY

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 9, 2000 Law on Science and Technology;

Pursuant to the November 29, 2005 Investment Law;

At the proposal of the Minister of Science and Technology,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree provides for the forms, contents, competence and order of and procedures for foreign cooperation and investment in science and technology.

2. This Decree does not provide for the forms, contents, competence and order of and procedures for foreign cooperation and investment to establish universities, academies and colleges.

Article 2. Subjects of application

This Decree applies to Vietnamese organizations and individuals entering into cooperation and investment with foreign parties or making offshore investment in science and technology; and foreign organizations and individuals entering into cooperation and investment in science and technology in Vietnam.

Article 3. Application of international laws, treaties, foreign laws and international practices

1. Foreign cooperation and investment in science and technology comply with Vietnam's law on science and technology, investment law and other laws; for cooperation and investment activities in specific science and technology areas which are regulated by other laws, these laws prevail.

2. In case treaties to which Vietnam is a contracting party contain provisions which are different from those provided in this Decree, these treaties prevail.

3. Foreign organizations and individuals may agree on or request the application of foreign laws and international practices to activities of cooperation and investment with Vietnamese parties in science and technology, provided that these foreign laws and international practices are not contrary to fundamental principles of Vietnam's law.

Article 4. Encouragement for foreign organizations and individuals entering into cooperation and investment for science and technology development

1. To encourage foreign organizations and individuals to enter into cooperation and investment in the following areas:

a) Basic research in natural sciences;

b) Research into the application and development of information technology, bio­technology, new material technology, automation and electro-mechanical technology; atomic energy and alternative energies, space technology, mechanical and engineering technology, farm produce and food preservation and processing technology and waste treatment technology;

c) Hi-tech human resource training and development;

d) Development of hi-tech enterprises in Vietnam;

e) Technology transfer and scientific and technological services;

f) Setting up or making contributions to setting up science and technology development funds in Vietnam.

2. In addition to cases specified in Clause 1 of this Article, the Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with relevant ministries and branches in, studying and proposing the Prime Minister to consider and decide on the setting up of Vietnam-based science and technology organizations by foreign organizations and individuals in some areas for which Vietnam has demand.

Article 5. Prohibited acts in foreign cooperation and investment in science and technology

1. Prohibited acts in science and technology, investment, publication and press activities provided in the Law on Science and Technology, the Investment Law the Publishing Law and the Press Law.

2. Other prohibited acts as prescribed by Vietnam's law.

Chapter II

FOREIGN COOPERATION IN SCIENCE AND TECHNOLOGY

Article 6. Forms of foreign cooperation in science and technology

1. Providing aid, financial assistance and donations (below referred to as financial assistance) for scientific and technological activities.

2. Concluding science and technology contracts.

3. Associating or participating in scientific and technological activities with foreign parties, including:

a) Joining science and technology organizations and associations;

b) Participating in scientific and technological research, training and counseling activities or scientific and technological conferences and seminars held by international organizations or foreign organizations and individuals;

c) Participating in cooperative activities for the performance of scientific and technological tasks at home and abroad.

4. Foreign cooperation in science and technology must be expressed in a contract or a cooperation agreement document (below referred to as the cooperation document).

The Ministry of Science and Technology shall provide for the principles, forms and contents of documents on cooperation in science and technology.

Article 7. Vietnamese organizations and individuals receiving financial assistance for scientific and technological activities from foreign organizations and individuals

1. Vietnamese organizations and individuals shall receive foreign financial assistance for scientific and technological activities from the source of official development assistance in accordance with the law on management and use of official development assistance.

2. Vietnamese organizations and individuals shall receive foreign financial assistance for scientific and technological activities from the source of foreign non-governmental assistance in accordance with the law on the management and use of foreign non-governmental assistance.

3. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Finance and relevant ministries and branches in, proposing the Prime Minister to decide on the receipt, management and use of foreign financial assistance other than those prescribed in Clauses 1 and 2 of this Article for scientific and technological activities.

Article 8. Vietnamese organizations and individuals providing financial assistance to foreign organizations and individuals for scientific and technological activities

The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Finance and relevant ministries and branches in elaborating and proposing the Prime Minister to decide on the provision of financial assistance by Vietnamese organizations and individuals to foreign organizations and individuals for scientific and technological activities.

Article 9. Association and participation in scientific and technological activities

1. Vietnamese organizations and individuals may associate and participate in scientific and technological activities with foreign parties in areas in which Vietnamese organizations and individuals are permitted to establish science and technology organizations.

2. Vietnamese organizations and individuals that associate or participate in scientific and technological activities with foreign parties shall make a cooperation document and comply with the order and procedures prescribed in Article 10 of this Decree.

Article 10. Order of and procedures for foreign cooperation in science and technology

1. Within 15 (fifteen) working days after the date of signing a document on cooperation in science and technology, the Vietnamese organization or individual concerned shall, on behalf of relevant parties, send a notice, enclosed with a copy of the cooperation document, to a competent state management agency defined in Clause 2 of this Article.

2. State management agencies competent to receive notices of and documents on cooperation in science and technology:

a) Ministries, ministerial-level agencies and government-attached agencies shall receive cooperation documents of Vietnamese organizations and individuals under their management;

b) Provincial-level People's Committees shall receive cooperation documents of Vietnamese organizations and individuals under their management.

3. Competent state management agencies defined in Clause 2 of this Article shall examine and inspect activities of foreign cooperation in science and technology.

Article 11. Technology transfer contracts and intellectual property right transfer contracts

Vietnamese organizations and individuals shall sign technology transfer contracts and intellectual property right transfer contracts with foreign organizations and individuals under Vietnam's laws on technology transfer and intellectual property.

Chapter III

FOREIGN INVESTMENT IN SCIENCE AND TECHNOLOGY

Section 1

FOREIGN INVESTMENT IN SCIENCE AND TECHNOLOGY IN VIETNAM

Article 12. Forms of foreign investment in science and technology

1. Direct investment:

a) Establishing wholly foreign-owned science and technology organizations or enterprises;

b) Establishing joint-venture science and technology organizations and enterprises between Vietnamese and foreign organizations and individuals.

2. Indirect investment:

Indirect investment in science and technology complies with Vietnam's law.

Article 13. Conditions for establishment and procedures for registration of operation of foreign-invested science and technology organizations

1. Conditions for the establishment of a foreign-invested science and technology organization:

a) Possessing an investment certificate granted by a competent state management agency in charge of investment;

b) Having an operation charter which states operation domains compliant with Vietnam's law;

c) Having sufficient scientific and technological staffs who are specialized in its operation domains.

d) Having working offices and physical and technical foundations for conducting scientific research, experiments and test, providing services and carrying out other activities in conformity with its operation charter and Vietnam's law;

e) Obtaining a written agreement on the establishment of the science and technology organization, issued by the People's Committee of the province or centrally run city in which the organization is to be headquartered;

f) Meeting environmental requirements as prescribed by law.

2. Foreign-invested science and technology organizations established under this Decree may conduct scientific and technological activities in Vietnam only after they have completed procedures for operation registration and received certificates of registration for scientific and technological activities by competent state management agencies and paid charges and fees according to law.

3. Foreign organizations and individuals establishing foreign-invested science and technology enterprises in Vietnam shall comply with Vietnam's law on science and technology enterprises.

4. The Ministry of Science and Technology shall specify conditions for establishment and procedures for registration for operation of foreign-invested science and technology organizations.

Article 14. Competence to decide on the establishment of foreign-invested science and technology organizations in Vietnam

1. The Prime Minister shall decide on the establishment of wholly foreign-owned science and technology organizations.

2. The Minister of Science and Technology shall decide on the establishment of foreign-invested science and technology organizations other than those specified in Clause 1 of this Article.

Article 15. Sequence of and procedures for issuing decisions on the establishment of foreign-invested science and technology organizations

1. A dossier of request for the establishment of a foreign-invested science and technology organization comprises:

a) A written request for the establishment of a science and technology organization;

b) The written certification of the legal status of the foreign organization or individual concerned;

c) The draft operation charter;

d) The investment certificate, granted by a state management agency in charge of investment;

e) The project on establishing a science and technology organization, covering explanations about the necessity for the establishment of the organization; the conformity with science and technology development strategies and plans; objectives, contents and scope of scientific and technological activities in Vietnam; investment scope; expected science and technology human resources; and financial analysis (if any);

In case the project on establishing a science and technology organization is associated with investment in work construction, the dossier must include the investment project on work construction (the feasibility study report) according to the law on investment in work construction.

f) A document, issued by the People's Committee of the province or centrally run city in which the organization is to be headquartered, accepting the location of the organization;

g) The audited financial statement or equivalent documents of the latest fiscal year of the foreign organization or individual.

The dossier specified in Clause 1 of this Article must be translated into Vietnamese and consularly legalized.

2. Sequence of and procedures for issuing establishment decisions

a) Organizations and individuals specified in Clause 1, Article 12 of this Decree shall send 5 (five) sets of dossier, including 1 (one) original, to the Ministry of Science and Technology;

b) Within 10 (ten) working days after receiving a dossier prescribed in Clause 1 of this Article, the Ministry of Science and Technology shall examine the validity of the dossier. If the dossier is invalid, the Ministry of Science and Technology shall notify in writing the invalidity to the applicant for modification or supplementation of the dossier.

If the dossier is valid, the Ministry of Science and Technology shall send it to relevant ministries and the People's Committee of the province or centrally run city in which the organization is to be headquartered for comment.

c) Within 15 (fifteen) working days after receiving a dossier of request for the establishment of a foreign-invested science and technology organization, relevant ministries and the People's Committee of the province or centrally run city in which the organization is to be headquartered shall give written opinions on matters under their management and take responsibility for their opinions;

d) Within 30 (thirty) working days after receiving a valid and complete dossier, the Ministry of Science and Technology shall make an appraisal report and propose the Prime Minister to issue a decision on the establishment of a wholly foreign-owned science and technology organization as prescribed in Clause 1, Article 14 of this Decree or issue a decision of the establishment of a foreign-invested science and technology organization as prescribed in Clause 2, Article 14 of this Decree;

e) In case the dossier of request for the establishment of a foreign-invested science and technology organization is rejected, the Ministry of Science and Technology shall send a written notice to the applicant, clearly stating the reason;

f) Within 10 (ten) working days after the issuance of a decision on the establishment of a foreign-invested science and technology organization, the Ministry of Science and Technology shall make copies of this decision and send them to the Government Office, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Public Security, the People's Committee of the province or centrally run city in which the organization is to be headquartered, and relevant ministries, branches and agencies;

g) Within 30 (thirty) working days after the issuance of its establishment decision, the foreign-invested science and technology organization shall carry out procedures for registration of scientific and technological activities according to law.

Article 16. Procedures for foreign investment in science and technology

1. Foreign organizations and individuals investing in science and technology shall carry out investment procedures under Vietnam's law on investment.

2. Before granting investment certificates, agencies competent to grant investment certificates shall send dossiers of investment projects to state management agencies in charge of science and technology to seek appraisal opinions on conditions for foreign investment in science and technology.

Article 17. Decentralization of powers to appraise foreign-invested projects on science and technology

1. The Ministry of Science and Technology shall appraise scientific and technological contents of investment projects in which investment strategy is decided by the Prime Minister according to the law on investment.

2. Provincial-level Science and Technology Departments shall appraise scientific and technological contents of investment projects other than those prescribed Clause 1 of this Article which are carried out in their localities.

Article 18. Sequence of appraising scientific and technological contents of investment projects subject to appraisal prior to grant of investment certificates

1. The sequence for appraising scientific and technological contents of an investment project in which investment is approved by the Prime Minister complies with Vietnam's law on investment and following regulations:

a) The agency competent to grant investment certificates shall send a written request for appraisal of conditions for foreign investment in science and technology, enclosed with 2 (two) sets of the project dossier, to the Ministry of Science and Technology;

b) When elaborating the appraisal report for submission to the Prime Minister, the agency competent to grant investment certificates shall enclose it with the Science and Technology Ministry's opinions on the investment project's satisfaction of conditions for foreign investment in science and technology;

c) Within 7 (seven) working days after granting an investment certificate, the granting agency shall send 1 copy of the investment certificate to the Ministry of Science and Technology.

2. The sequence of appraising scientific and technological contents of an investment project subject to appraisal prior to grant of investment certificates other than those specified in Clause 1 of this Article complies with Vietnam's law on investment and the following regulations:

a) The agency competent to grant investment certificates shall send a written request for appraisal of a foreign-invested project in science and technology, enclosed with 2 (two) sets of the project dossier, to the Science and Technology Department of province or centrally run city in which the requester is headquartered, for institutional requesters, or reside, for individual requesters;

b)The agency competent to grant investment certificates shall base itself on the provincial-level Science and Technology Department's opinions on the project's satisfaction of conditions for foreign investment in science and technology to consider and grant an investment certificate;

c) Within 7 (seven) working days after granting an investment certificate, the granting agency shall send 1 (one) copy of the investment certificate to the Ministry of Science and Technology.

Section 2

VIETNAMESE ORGANIZATIONS AND INDIVIDUALS MAKING OFESHORE INVESTMENT IN SCIENCE AND TECHNOLOGY

Article 19. Conditions for offshore investment in science and technology

Apart from complying with the law on overseas direct investment, offshore investment projects on science and technology must meet the following conditions:

1. Having a project on offshore investment in science and technology;

2. Obtaining permission for the Ministry of Science and Technology;

3. Having an investment certificate granted by the Ministry of Planning and Investment.

Article 20. Procedures for offshore investment in science and technology

1. Vietnamese organizations and individuals are encouraged by the State to make offshore investment in science and technology and shall carry out investment procedures according to Vietnam's law on offshore investment.

2. The Ministry of Planning and Investment shall send dossiers of projects on offshore investment in science and technology to the Ministry of Science and Technology for appraisal of conditions for offshore investment in science and technology.

Article 21. Sequence of appraising projects on offshore investment in science and technology

The sequence of appraising projects on offshore investment in science and technology complies with Vietnam's law on offshore investment and the following regulations:

1. The Ministry of Planning and Investment shall send an official letter requesting appraisal of a project on offshore investment in science and technology, enclosed with 2 (two) sets of the project dossier, to the Ministry of Science and Technology.

2. Within 15 (fifteen) working days after receiving the written request from the Ministry of Planning and Investment, the Ministry of Science and Technology shall appraisal the project dossier and give its opinions on the project's satisfaction of conditions for offshore investment in science and technology.

3. For investment projects in which investment is approved by the Prime Minister, when elaborating an appraisal report for submission to the Prime Minister, the Ministry of Planning and Investment shall enclose it with the Science and Technology Ministry's appraisal opinions on the project's satisfaction of conditions for offshore investment in science and technology.

4. Within 7 (seven) working days after granting an investment certificate, the Ministry of Planning and Investment shall send 1 (one) copy of the investment certificate to the Ministry of Science and Technology.

Section 3

TERM)NATION OF OPERATION OF INVESTMENT PROJECTS; EXAMINATION, INSPECTION AND HANDLING OF VIOLATIONS IN THE FIELD OF FOREIGN INVESTMENT IN SCIENCE AND TECHNOLOGY

Article 22. Termination of operation of investment projects

The operation of a foreign-invested project on science and technology shall be terminated in cases defined in Article 65 of the Investment Law and the following cases:

1. The organization or individual concerned fails to fully satisfy investment conditions prescribed in Articles 13 and 19 or violates Article 5 of this Decree.

2. The establishment decision or investment certificate is revoked by a competent state management agency due to violations of the investment law.

3. The certificate of registration for scientific and technological activities of the science and technology organization is revoked by a competent state management agency according to law.

Article 23. Inspection, examination and handling of violations in foreign investment in science and technology

1. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with ministries, branches and provincial-level People's Committees in, performing the following tasks:

a) Inspecting and examining the observance of law on science and technology regarding activities of foreign investment in science and technology according to its competence;

b) Formulating programs and plans on inter-sectional inspection and examination of activities of foreign investment in science and technology;

c) Inspecting the issuance of certificates of qualification for investment in science and technology to foreign-invested projects by provincial-level People's Committees under the Law on Science and Technology, the Investment Law and this Decree;

d) Biannually and annually reviewing activities of foreign investment in science and technology for reporting to the Government.

2. Acts of violation of the investment law and handling of violations of regulations on investment in science and technology are defined in the law on science and technology, the law on investment and other relevant laws.

Chapter IV

REPRESENTATIVE OFFICES AND BRANCHES OF FOREIGN SCIENCE AND TECHNOLOGY ORGANIZATIONS IN VIETNAM

Article 24. Establishment of representative offices and branches of foreign science and technology organizations in Vietnam

1. Foreign science and technology organizations may establish their representative offices in Vietnam (below referred to as representative offices).

2. Foreign science and technology organizations may establish their branches in Vietnam (below referred to as branches) under Vietnam's commitments in treaties to which Vietnam is a contracting party to conduct scientific and technological activities and directly related activities under the Law on Science and Technology and this Decree.

3. Representative offices and branches are affiliates of foreign science and technology organizations. It is not permitted to establish representative offices or branches under a representative office or branch.

Article 25. Competence to grant licenses for establishing representative offices or branches

The Ministry of Science and Technology shall grant, re-grant, modify, supplement and extend licenses for establishing representative offices or branches of foreign science and technology organizations in Vietnam.

Article 26. Conditions for establishing representative offices and branches of foreign science and technology organizations in Vietnam

1. Conditions for establishing a representative office or branch of a foreign science and technology organization in Vietnam:

a) Being an organization recognized by the law of the country or territory (below referred to as country) in which it is established or registers for operation;

b) Having operated for at least 1 (one) year (in cases of establishing representative offices) or 5 (five) years (in cases of establishing branches), counting from the time of its establishment or registration for lawful operation in the country in which it is established;

c) Having adopted an operation charter for the representative office or branch;

d) Committing to strictly abiding by Vietnam's law and treaties to which Vietnam is a contracting party.

2. The maximum validity duration of a license for establishing a Vietnam-based representative office or branch of a foreign science and technology organization is 5 (five) years, which, however, must not exceed the remaining duration of the operation registration certificate or equivalent papers of the establishing organization, in case the law of the host country provides for the validity duration of operation registration certificates.

Article 27. Dossiers of application for licenses for establishing representative offices or branches of foreign science and technology organizations in Vietnam

1. A dossier of application for a license for establishing a representative office of a foreign science and technology organization in Vietnam comprises:

a) An application for a license for establishing a representative office, signed by a competent representative of the applying organization;

b) A copy of the operation registration certificate or equivalent paper of the applying organization, with certification of the authority competent to decide on its establishment. In case the operation registration certificate or equivalent paper provides for the duration of operation of the applying organization concerned, the remaining operation duration must be at least 1 (one) year.

c) The audited financial statement or equivalent paper evidencing the existence and actual operation of the applying organization in the latest fiscal year;

d) A copy of the operation charter of the applying organization;

e) Judicial records of the head and staff members of the representative office.

2. A dossier of application for a license for establishing a branch of a foreign science and technology organization in Vietnam comprises:

a) An application for a license for establishing a branch, signed by a competent representative of the applying organization;

b) A copy of the branch's operation charter, clearly stating the scope of authorization to the branch's head;

c) A copy of the operation registration certificate or equivalent paper of the applying organization, with certification of a competent authority of the country in which it is established or registers for operation. In case the operation registration certificate or equivalent paper provides for the operation duration of the applying organization, the remaining operation duration must be at least 3 (three) years.

d) The audited financial statement or equivalent paper evidencing the existence and actual operation of the applying organization in the latest fiscal year;

e) Judicial records of the head and staff members of the branch.

3. Papers specified at Points b, c and d. Clause 1 and Points b, c and d. Clause 2 of this Article must be translated into Vietnamese and consularly legalized.

Article 28. Procedures for the grant of a license for establishing representative offices or branches of foreign science and technology organizations

1. The foreign science and technology organization shall send a dossier of application for a license for establishing a representative office or branch to the Ministry of Science and Technology.

2. Within 30 (thirty) working days after receiving a valid and complete dossier, the Ministry of Science and Technology shall grant a license for establishing a representative office or branch to the applying organization and send copies of the license to the Ministry of Industry and Trade, the Ministry of Foreign Affairs, the Ministry of Public Security and the People's Committee of the province or centrally run city in which the representative office or branch is to be headquartered.

3. If the dossier is invalid, within 5 (five) working days after receiving the dossier, the Ministry of Science and Technology shall notify in writing such to the applying organization for supplementation of the dossier.

4. The time limit specified in Clause 2 of this Article does not include the time for the applying organization to supplement the dossier.

5. In case of un qualification for the grant of a license for establishing a representative office or branch, the Ministry of Science and Technology shall issue a written reply to the applying organization, clearly stating the reason.

Article 29. Announcement on operation of representative offices and branches

1. Within 45 (forty five) working days after receiving an establishment license, the representative office or branch of a foreign science and technology organization shall publish on 3 (three) consecutive issues of a national newspaper an announcement covering the following details:

a) Its name and address;

b) Name and address of the foreign science and technology organization;

c) The head of the representative office or branch;

d) The serial number, date of issuance and validity duration of its establishment license and the licensing agency;

e) Its operation scope.

2. Within the time limit specified in Clause I of this Article, the representative office or branch shall commence and notify its operation to the Ministry of Science and Technology.

Article 30. Setting up the managerial apparatus of a representative office or branch

1. The setting up of the managerial apparatus and appointment of the head of a representative office or branch shall be decided by the foreign science and technology organization.

2. The number of foreigners working in a representative office or branch must conform with Vietnam's law on labor and treaties to which Vietnam is a contracting party.

Article 31. Procedures for registration for modification or supplementation of licenses for establishing representative offices or branches

1. Upon changing or supplementing any contents of the license for establishing a representative office or branch, except for cases defined in Article 32 of this Decree, the foreign science and technology organization concerned shall carry out procedures for registration of modification or supplementation at the Ministry of Science and Technology.

2. A dossier of request for modification of a license for establishing a representative office or branch comprises:

a) A written request for modification or supplementation of a license for establishing a representative office or branch, signed by a competent representative of the requesting organization;

b) The original license for establishing a representative office or branch.

3. Within 10 (ten) working days after receiving a valid dossier from the foreign science and technology organization, the Ministry of Science and Technology shall modify or supplement the license and send copies of the modified or supplemented license to agencies specified in Clause 2, Article 28 of this Decree.

Article 32. Procedures for re-granting licenses for establishing representative offices or branches

1. For cases of changing the location, name or operation purposes of a representative office or branch, the foreign science and technology organization shall carry out procedures for the re-grant of a license for establishing a representative office or branch at the Ministry of Science and Technology.

2. A dossier of request for re-grant of a license for establishing a representative office or branch comprises;

a) A written request for re-grant of a license for establishing a representative office or branch, signed by a competent representative of the requesting organization;

b) The granted license for establishing a representative office or branch.

3. Within 10 (ten) working days after receiving a valid dossier, the Ministry of Science and Technology shall re-grant a license for establishing a representative office or branch with a validity duration not exceeding the remaining validity duration of the granted license and notify such to agencies defined in Clause 2. Article 28 of this Decree.

Article 33. Extension of licenses for establishing representative offices or branches

1. A foreign science and technology organization may have its license for establishing a representative office or branch extended if:

a) It wishes to continue operating in Vietnam in the form of representative office or branch;

b) It is lawfully operating under the law of the country in which it is established:

c) It has committed no violation of Article 5 of this Decree and Vietnam's law.

2. A dossier of request for extension of a license for establishing a representative office or branch comprises:

a) A written request for extension of the license for establishing a representative office or branch, signed by a competent representative of the requesting organization;

b) The audited financial statement or other equivalent paper evidencing the existence and actual operation of the requesting organization in the latest fiscal year;

c) A report on operation of the representative office or branch till the time of requesting extension of its establishment license;

d) The original establishment license.

3. The foreign science and technology organization shall carry out procedures for extension of a license for establishing a representative office or branch at least 30 days before the expiration of the license.

4. The time limit for competent state agencies to perform procedures for extending a license for establishing a representative office or branch is the same as that for granting a new license defined in Article 28 of this Decree.

5. In cases of refusing to extend a license for establishing a representative office or branch, the Ministry of Science and Technology shall issue a written reply to the requesting organization, clearly stating the reason for the refusal.

6. The Ministry of Science and Technology shall notify agencies defined in Clause 2, Article 28 of this Decree of the extension or non-extension of licenses. branches

7. The extension duration complies with the duration of licenses for establishing representative offices or branches defined in Clause 1, Article 26 of this Decree.

Article 34. Termination of operation of representative offices or branches

A representative office or branch of a foreign science and technology organization shall terminate its operation in any of the following cases:

1. It terminates its operation ahead of time as indicated in the establishment license.

2. The operation duration stated in the establishment license expires without any extension.

3. It fails to commence operation within 6 (six) months after the first-time grant of an establishment license or 3 (three) months after the date of extension of the establishment license.

4. It is detected to have falsified the dossier of request for operation.

5. It is detected to have committed violations of law during its operation.

6. The certificate of registration for scientific and technological activities of its foreign science and technology organization expires, is withdrawn or cancelled.

The Ministry of Science and Technology shall notify in writing agencies defined in Clause 2, Article 28 of this Decree of the termination of operation of representative offices or branches in Vietnam and make announcement in the mass media.

Article 35. Fees for grant, re-grant, modification, supplementation and extension of licenses for establishing representative offices or

1. Foreign science and technology organizations shall pay fees for the grant, re-grant, modification, supplementation and extension of licenses for establishing representative offices or branches.

2. The Ministry of Finance shall assume the prime responsibility for. and coordinate with the Ministry of Science and Technology in, specifying the rates and management of fees for the grant, re-grant, modification, supplementation and extension of licenses for establishing representative offices or branches.

Chapter V

IMPLEMENTATION PROVISIONS

Article 36. Transitional provisions

1. Foreign cooperation documents signed before the effective date of this Decree may be further implemented and, by June 1, 2011, organizations and individuals that have foreign cooperation activities shall send review reports to competent state management agencies according to Article 10 of this Decree.

2. Foreign cooperation documents signed before the effective date of this Decree but not yet implemented must comply with this Decree.

3. Investment projects on establishing foreign-invested science and technology organizations which have been granted investment certificates by competent state management agencies before the effective date of this Decree must carry out procedures to apply for licenses for establishing science and technology organizations under Article 15 of this Decree.

4. Foreign-invested projects in science and technology which have submitted dossiers but not yet been granted investment certificates by competent state management agencies in charge of investment before the effective date of this Decree must comply with Articles 18 and 21 of this Decree.

5. Representative offices and branches which have been established before the effective date of this Decree may continue operating in accordance with the contents of their licenses and must carry out procedures for re-grant of establishment licenses under this Decree within 6 (six) months after the effective date of this Decree.

Article 37. Effect

1. This Decree takes effect on September 1, 2010.

2. Previous regulations on foreign cooperation and investment in science and technology which are contrary to this Decree are all annulled.

Article 38. Implementation responsibility

1. Annually, ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People's Committees and heads of management boards of industrial parks, export-processing zones, hi-tech parks and economic zones shall report on the situation and assess the effectiveness of foreign cooperation and investment in science and technology areas under their management in the previous year to the Ministry of Science and Technology for reporting to the Prime Minister.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of People's Committees shall guide and implement this Decree.